Podcast: ‘Weekly Wrap’ on originations, AI-driven lending

Tech-focused companies are looking for new ways to enter the auto space amid economic headwinds and fluctuating origination performances in the second quarter. AI-based financier Pagaya Technologies is eyeing continued growth in the auto space and hopes to provide a counteroffer and refinance option for consumers through an agreement with subprime auto lender OneMain Financial . Meanwhile, AI-focused lending platform Upstart is looking to be more competitive in the auto space with the release of new underwriting models for its auto retail and refinance products. . Upstart’s Q2 auto originations climbed 38.5% sequentially but fell 67.9% year over year to $18 million. Vroom ’s finance subsidiary United Auto Credit Corp .’s originations hit $116 million in the second quarter , down 10.8% quarter over quarter but up 24.7% YoY after credit tightening contributed to improved portfolio performance. In Q2, auto retailers reported mixed finance and insurance (F&I) revenue performances as Lithia Motors , Asbury Automotive and Group 1 Automotive posted YoY increases while Sonic Automotive and Penske Automotive posted YoY declines. Powersports Powersports retailer RumbleOn ’s F&I revenue totaled $29.7 million in Q2, up 15.1% QoQ but down 10.5% YoY while floorplan interest expense climbed due to elevated new-vehicle inventory. Camping World ’s F&I revenue came in at $179 million in Q2, up 32.2% sequentially and 7.2% YoY as new-RV sales increased and used-RV sales declined. In this episode of the “Weekly Wrap,” Auto Finance News Associate Editors Ashley Savage and James Van Bramer discuss trends in financier earnings, AI-based lending updates, finance and insurance revenue and the powersports market for the week ended Aug. 9. Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode. Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 7-9 at Wynn Las Vegas. . To learn more about the 2024 event and register, visit www. .AutoFinanceSummit.com. Ashley Savage: Hello everyone and welcome back to the road map from auto Finance news. . Since 1996, the nation's leading newsletter on automotive lending and leasing, it is Monday, August 12th, and I'm actually savage. . This is our weekly wrap on what happened in auto finance for the week ending August 9th, 2024. . In economic news, auto stocks quickly rebounded after falling 2% last Monday. . The market remains turbulent as investors await more guidance on the economy, which they'll receive a bit this week in the latest CPI report, scheduled for Wednesday. . In auto finance, AI driven companies are looking for new ways to enter the auto space amid economic headwinds and fluctuating origination performances. . In the second quarter, for example, PAGAYA technologies is iron. . Continued growth in the auto space and hopes to provide a counter offer and refinance option for consumers through an agreement with subprime auto lender 1 main financial upstart, another AI focused lending platform, is looking to be more competitive in the auto space with the release of new excuse me, with the release of new underwriting models for its auto retail and refinance products. . Upstairs, Q2 auto originations climbed 38.5% sequentially, but fell 67.9% year over year to 18 million rooms. . Finance. . Sorry rooms. . Excuse me. . Rooms finance subsidiary United Auto Credit Corp. . Originations hit 116,000,000 in the second quarter, down 10.8% quarter over quarter, but up 24.7% year over year after credit tightening contributed to improved portfolio performance and F and I News auto retailers reported mixed finance and insurance revenue performances as Lithia Motors, Asbury Automotive and Group One Automotive posted year over year increases while Sonic automotive infinitely automotive posted year over year decline on the powersports side, powersports retailer Rumble on SF and I revenue climb sequentially but fell year over year while Floorplan interest expense climbed due to elevated new vehicle inventory. . Camping World's F and I revenue increased sequentially and year over year given an increase in new RV Sales and an increase in new RV Sales and a decline in used RV Sales. . Also last week my colleague James Van Bramer covered the latest EV news out of Rivian and Lucid. . I'll hand it to James for more on that. .James Van Bramer: Thanks, ash. . So last week we had Evie, automakers Lucid and Ruby, and report earnings. . I'll start with lucid. . They saw sizable revenue jump in Q2, around 33% year over year. . We said also announced it will receive a $1.5 billion investment from AR, third investment and affiliate of Saudi Arabia's Public Investment Fund. . This is actually a separate I'm this is a a separate investment from the one the right now. . So prior this year this is investment is expected to help fund the EV automaker on least the fourth quarter of 2025. . Who said? Said Espiridion, the EV automaker maintained its guidance and expects to produce about 57,000 electric vehicles in 2024, where begins production totals did fall, though 31.2% sequentially and 31.3% year over year, while deliveries Rose 1 1/2% sequentially and 9.1% year over year, according to its latest earnings report. . Uh Volkswagen previously announced that it would provide a $5 billion cash infusion for Rivian in June, in which the automakers will jointly develop a battery powered will jointly develop battery powered vehicles and software as part of the joint venture where we didn't expect this joint venture to close in the fourth quarter of the year according to its latest report. . That's all for me. . Back over to you, Ash. .Ashley Savage: Thanks, James. . That about does it for today's episode. . As a reminder, registration is open for the 2024 Auto Finance Summit and Powersports Finance Summit. . Returning to Vegas in October, more information can be found at auto finance Dot live. . Thanks for joining us on the roadmap and be sure to follow us on X and LinkedIn. . We will see you online at autofinancenews.net and here next time. .

Podcast: ‘Weekly Wrap’ on originations, AI-driven lending

Listen as AFN editors break down top stories from the past week

US consumers’ delinquency fears rise to highest level since 2020

Under the Hood: Creating rewards programs to mitigate delinquencies

Related Posts

CPS’ originations fall 12.3% in Q3

Vroom subsidiary UACC’s originations up 7%

Open Lending certified loans fall 13%

Under the Hood: Creating rewards programs to mitigate delinquencies

Stay Informed with Our Newsletters

The Roadmap Podcast

SPONSORED

Driving Innovation in Automotive Refunds: How Onbe and Allied Solutions Are Modernizing the Payment Experience

Navigating the Margin Squeeze: EVs, Tariffs & Pricing — A Q&A with Earnix

Enhancing credit approaches to boost conversion and dealer loyalty

Welcome Back!

Retrieve your password